Department of the Army awarded $21.3M contract for logistics consulting to Battelle Memorial Institute

Contract Overview

Contract Amount: $21,271,388 ($21.3M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Defense

Start Date: 2005-12-27

End Date: 2011-01-06

Contract Duration: 1,836 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200603!600214!2100!W911QY!USA MATERIEL COMMAND ACQUISITION!GS10F0333P !C!N! !N!W911QY06F0039! !20051227!20070106!007901598!007901598!007901598!N!BATTELLE MEMORIAL INSTITUTE !505 KING AVE !COLUMBUS !OH!43201!18000!049!39!COLUMBUS !FRANKLIN !OHIO !+000000500000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541330!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to BATTELLE MEMORIAL INSTITUTE for work described as: 200603!600214!2100!W911QY!USA MATERIEL COMMAND ACQUISITION!GS10F0333P !C!N! !N!W911QY06F0039! !20051227!20070106!007901598!007901598!007901598!N!BATTELLE MEMORIAL INSTITUTE !505 KING AVE !COLUMBUS !OH!43201!18000!049!39!COLUMBUS !FRAN… Key points: 1. Contract awarded for process, physical distribution, and logistics consulting services. 2. The contract was awarded under full and open competition. 3. The contract duration was 1836 days, indicating a long-term need for services. 4. The contractor, Battelle Memorial Institute, has a significant presence in the federal contracting space. 5. The contract was awarded by the Department of the Army, a major component of the Department of Defense. 6. The contract was a delivery order under a larger contract vehicle.

Value Assessment

Rating: fair

The total award amount of $21.3 million over approximately five years suggests a substantial investment in logistics consulting. Benchmarking this against similar contracts for process, physical distribution, and logistics consulting services is challenging without more specific details on the scope of work. However, the firm fixed-price nature of the contract implies that the government aimed to control costs by setting a fixed price for the defined services. The number of bids received (3) is on the lower side for a full and open competition, which could indicate potential issues with market research or the complexity of the requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Three bids were received for this requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the relatively low number of bidders (3) for a contract of this magnitude might suggest that the requirement was highly specialized, or that the solicitation process may not have reached a broad enough audience of potential offerors.

Taxpayer Impact: The full and open competition, despite a limited number of bidders, aims to ensure that taxpayer funds are used efficiently by fostering a competitive environment. However, with only three bids, there is a possibility that a more competitive scenario could have yielded even better pricing for the government.

Public Impact

The Department of the Army benefits from improved logistics and distribution processes. Services delivered likely include analysis, recommendations, and implementation support for supply chain and operational efficiency. The geographic impact is likely centered around Department of the Army installations and operations, potentially worldwide. Workforce implications could include the engagement of specialized consultants and potential training or process changes for Army personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (3) in a full and open competition may indicate potential for higher costs than a more competitive scenario.
The contract is a delivery order, suggesting it's part of a larger, potentially multi-award contract vehicle, which can sometimes obscure true competition and pricing at the individual order level.

Positive Signals

Awarded under full and open competition, which is the government's preferred method for ensuring broad access and fair pricing.
Firm Fixed Price contract type helps the government manage cost certainty for the defined scope of services.
The contractor, Battelle Memorial Institute, is a well-established research and development organization with experience in various technical and consulting fields.

Sector Analysis

This contract falls within the professional services sector, specifically consulting related to logistics and operations. The market for such services is significant within the federal government, particularly for agencies like the Department of Defense that manage complex global supply chains. Comparable spending benchmarks would typically involve analyzing other contracts for similar logistics consulting services awarded to large, established firms by defense agencies. The North American Industry Classification System (NAICS) code 541614 (Process, Physical Distribution, and Logistics Consulting Services) indicates a specialized niche within the broader management consulting industry.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the nature of the services and the contractor (Battelle Memorial Institute), it is unlikely that small businesses were the primary focus, though they could potentially participate as subcontractors. Further analysis would be needed to determine if subcontracting opportunities were mandated or actively pursued.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the program management office within the Department of the Army. As a delivery order under a larger contract vehicle, oversight mechanisms would be tied to the terms of that parent contract. Transparency is generally provided through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Logistics Modernization Programs
Army Supply Chain Management Initiatives
Professional Services Schedule (PSS) Contracts
Management and Consulting Services for Government Agencies

Risk Flags

Limited number of bidders for a large contract.
Potential for scope creep in consulting services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to BATTELLE MEMORIAL INSTITUTE. 200603!600214!2100!W911QY!USA MATERIEL COMMAND ACQUISITION!GS10F0333P !C!N! !N!W911QY06F0039! !20051227!20070106!007901598!007901598!007901598!N!BATTELLE MEMORIAL INSTITUTE !505 KING AVE !COLUMBUS !OH!43201!18000!049!39!COLUMBUS !FRANKLIN !OHIO !+000000500000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541330!E! !6! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2005-12-27. End: 2011-01-06.

What was the specific scope of work for Battelle Memorial Institute under this delivery order?

The provided data indicates the contract was for 'OTHER PROFESSIONAL SERVICES' under NAICS code 541614, 'Process, Physical Distribution, and Logistics Consulting Services.' While the exact deliverables are not detailed in the summary data, this type of contract typically involves analyzing existing logistics operations, identifying inefficiencies, recommending improvements in areas such as warehousing, transportation, inventory management, and supply chain strategy, and potentially assisting in the implementation of these recommendations. The Department of the Army likely sought expertise to optimize its complex distribution networks and operational processes.

How does the $21.3 million award compare to typical spending on logistics consulting by the Department of the Army?

Comparing this $21.3 million award requires access to historical spending data for similar logistics consulting services within the Department of the Army. Without that specific benchmark, it's difficult to definitively state if this amount is high or low. However, given the scale and complexity of Army operations, significant investments in optimizing logistics are common. The duration of the contract (over 4 years) suggests a substantial, ongoing need for these services, which could justify an award of this magnitude. Further analysis would involve querying contract databases for similar awards over comparable periods.

What are the potential risks associated with a firm fixed-price contract for complex consulting services?

Firm Fixed Price (FFP) contracts aim to provide cost certainty for the government. However, for complex consulting services, risks can arise if the scope of work is not perfectly defined upfront. If the contractor, Battelle Memorial Institute, encounters unforeseen complexities or if the government's needs evolve significantly beyond the initial scope, there could be pressure to modify the contract or for the contractor to absorb unexpected costs, potentially impacting the quality or completeness of the deliverables. Conversely, if the scope is too narrowly defined, the contractor might deliver only the minimum required, potentially leaving value on the table for the government. Effective contract management and clear communication are crucial to mitigate these risks.

What is Battelle Memorial Institute's track record with federal contracts, particularly within the Department of Defense?

Battelle Memorial Institute is a well-established research and development organization that frequently contracts with the U.S. federal government, including significant work with the Department of Defense. Their track record generally indicates experience across a wide range of scientific, technical, and engineering services, often involving complex problem-solving and analysis. While this specific contract focuses on logistics consulting, Battelle's broader experience suggests a capacity to handle sophisticated requirements. A deeper dive into their contract history would reveal specific performance ratings, past issues, and the types of services they have provided to DoD agencies.

How does the number of bidders (3) impact the perceived value for money in this full and open competition?

A full and open competition is designed to elicit the maximum number of bids to drive down prices and ensure the best value. Receiving only three bids for a contract valued at over $21 million could suggest several possibilities. It might mean the requirement was highly specialized, attracting only a few qualified bidders. Alternatively, it could indicate that the solicitation process, marketing, or pre-bid engagement was not sufficiently broad to attract more competition. While three bidders still represent competition, it is less than ideal compared to scenarios with five or more, potentially limiting the downward pressure on pricing and thus impacting the perceived value for money compared to a more robustly competed contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 505 KING AVENUE, COLUMBUS, OH, 43201

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0333P

IDV Type: FSS

Timeline